Free tool · Plan or check your PG

PG Business Profit Calculator

Planning a new PG or checking an existing one? Enter your beds, rent, expected occupancy and monthly costs to see profit, margin, break-even occupancy, payback period and profit per bed — with a simple table of how profit changes as occupancy moves.

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1. Beds & rent

Rent
₹

34 of 40 beds filled on average. Established PGs usually run at 80–95%.

2. Other income

₹

Food, laundry or AC charges billed on top of rent. 0 if rent includes them.

₹

Parking, vending machine, short stays.

3. Monthly costs

₹
₹
₹
₹
₹
₹
₹
₹

Grows with occupancy. 0 if you don’t serve food.

₹

Advance/deposit to the landlord, furniture, beds, interiors, appliances.

Your monthly numbers

Revenue

₹3,06,000

₹3,06,000 rent

Costs

₹2,67,000

₹1,99,000 fixed + ₹68,000 food

Profit

₹39,000

₹4,68,000 a year

Profit margin

12.7%

Profit ÷ revenue

Break-even occupancy

71.1%

About 29 of 40 beds filled

Payback of setup

2 years 2 months

₹10,00,000 setup cost

Profit per bed

₹975

Per available bed / month

Per filled bed

₹1,147

Per occupied bed / month

At 85% occupancy (34 of 40 beds), your PG makes a profit of ₹39,000 a month. Break-even occupancy: 71.1%. Every bed you fill above that adds about ₹7,000 to monthly profit. You would earn back the setup cost in about 2 years 2 months.

Profit at different occupancy

Monthly revenue, costs and profit from 50% to 100% occupancy
OccupancyBedsRevenueCostsProfitMargin
50%20₹1,80,000₹2,39,000-₹59,000-33%
60%24₹2,16,000₹2,47,000-₹31,000-14%
70%28₹2,52,000₹2,55,000-₹3,000-1%
80%32₹2,88,000₹2,63,000₹25,0009%
85%yours34₹3,06,000₹2,67,000₹39,00013%
90%36₹3,24,000₹2,71,000₹53,00016%
100%40₹3,60,000₹2,79,000₹81,00023%

Fixed costs stay the same at every occupancy; rent, extra charges and food cost grow with the number of filled beds.

How to use the PG Profit Calculator

  1. 1

    Enter beds & rent

    Type the number of beds and rent per bed, or switch to “By sharing type” for single, double and triple sharing.

  2. 2

    Set occupancy

    Drag the slider to your expected average occupancy. Add any extra per-bed charges or other income.

  3. 3

    Add your costs

    Fill in monthly costs, food cost per filled bed, and the one-time setup cost if you want the payback period.

  4. 4

    Read the results

    See monthly profit, margin, break-even occupancy, payback period and how profit changes from 50% to 100% occupancy.

Frequently asked questions

How much profit does a PG business make in India?

A well-run PG often keeps 15–35% of its revenue as profit, depending on the city, rent you pay for the building, whether you serve food, and above all occupancy. For example, a 40-bed PG charging ₹9,000 a bed at 85% occupancy earns about ₹3 lakh a month; after property rent, staff, utilities and food it might keep ₹40,000–₹1,00,000. Use the calculator with your own numbers.

What is break-even occupancy?

It is the share of beds you need filled for income to exactly cover costs. Below it you lose money; above it every extra tenant adds profit. If your break-even is 70%, a PG that is 85% full is comfortably profitable, while one at 65% is losing money each month.

How is the payback period calculated?

Payback period = one-time setup cost ÷ monthly profit. It tells you how long it takes to earn back what you spent to start — the landlord’s advance, beds, mattresses, furniture, interiors and appliances. It assumes your profit stays the same every month.

Which costs should I include?

Include every monthly cost: building rent or loan EMI, electricity, water, staff salaries (cook, cleaner, warden), groceries and gas, internet, repairs and maintenance, and smaller items like cleaning supplies, software and property tax spread across the year. Enter food as a cost per filled bed so it rises and falls with occupancy.

How can I improve my PG’s profit margin?

Raise occupancy first — it has the biggest effect, because most costs are fixed. Collect rent on time to avoid dues piling up, charge electricity separately with sub-meters if usage is high, plan food menus to cut wastage, and keep vacancies short by onboarding new tenants quickly.

Is this calculator accurate for hostels and co-living too?

Yes. The same model works for hostels, co-living spaces and student accommodation: beds, rent per bed, occupancy, per-bed food cost and fixed monthly costs. Nothing you enter is stored or sent anywhere.

Free 14-day trial

Do this automatically with My PG Manager

My PG Manager tracks your real occupancy, rent collected, dues and expenses every day, and shows profit per property in its reports — so you always know your actual numbers, not estimates.